BUYING PROPERTY IN JAPAN
Complete guide to purchasing real estate in Japan — from search to ownership.
Purchasing property in Japan offers a unique opportunity for both residential living and investment. Whether you're a foreign buyer or a domestic purchaser, understanding the Japanese real estate market, legal requirements, and buying process is essential to making informed decisions.
At ARK G.K., we provide bilingual support throughout your entire property purchase journey, ensuring a smooth and transparent experience from initial search to final ownership.
Step-by-Step Buying Process
1. Property Search & Selection
Begin by identifying your requirements: location, property type, budget, and desired features. Work with a bilingual agent who understands both the Japanese market and international buyer needs.
- Define your budget including purchase price and additional costs
- Research neighborhoods and commute times
- Visit properties with your agent
- Request detailed property information (重要事項説明書 - jūyō jikō setsumeisho)
2. Making an Offer (Purchase Application)
Once you've found your ideal property, submit a purchase application (買付証明書 - kaitsuke shōmeisho). This is not legally binding but demonstrates serious intent.
- Submit purchase application with proposed price and conditions
- Negotiate price and terms if necessary
- Agree on timeline for contract signing and closing
- Prepare earnest money deposit (typically 5-10% of purchase price)
3. Due Diligence & Inspections
Before signing the contract, conduct thorough due diligence to verify the property's condition, legal status, and any potential issues.
- Review the Important Matters Explanation (重要事項説明 - jūyō jikō setsumei)
- Verify property boundaries and registered area
- Check for any liens or encumbrances on the property
- Conduct building inspection if purchasing older property
- Review management fees and reserves (for condominiums)
4. Purchase Contract Signing
The formal purchase contract (売買契約書 - baibai keiyakusho) is a legally binding agreement outlining all terms and conditions.
- Review contract thoroughly with bilingual support
- Pay earnest money (手付金 - tetsukekin) at contract signing
- Understand cancellation clauses and penalties
- Confirm closing date and handover procedures
5. Securing Financing (if applicable)
If you require a mortgage, begin the application process immediately after contract signing. Foreign buyers should note specific requirements.
- Compare mortgage rates from multiple banks
- Prepare required documentation (employment, income proof, residence status)
- Obtain pre-approval before contract signing (recommended)
- Understand loan-to-value ratios for foreign buyers
6. Final Settlement & Registration
On the closing day (決済日 - kessai bi), complete payment and transfer ownership through legal registration.
- Pay remaining balance of purchase price
- Pay registration fees and transfer taxes
- Receive property keys and documents
- Complete ownership registration (所有権移転登記 - shoyūken iten tōki)
Financing Options for Foreign Buyers
Foreign buyers can obtain mortgages in Japan, though requirements are stricter than for Japanese nationals. Key considerations include:
- Residence Status: Permanent residents have easier access to financing. Non-permanent residents may need larger down payments (30-40%)
- Employment: Stable employment in Japan is typically required, with at least 1-3 years of work history
- Income Verification: Tax certificates (納税証明書) and employment contracts are required
- Loan Terms: Typically 15-35 years for residential properties
- Interest Rates: Fixed or variable rates available, currently in the 0.5-2% range
ARK G.K. Support
Our team has established relationships with multiple Japanese banks and can facilitate introductions to mortgage specialists familiar with foreign buyer requirements.
Closing Costs & Transfer Taxes
Beyond the purchase price, buyers should budget for additional costs totaling approximately 6-10% of the property value:
| Cost Item | Typical Amount |
|---|---|
| Real Estate Acquisition Tax (不動産取得税) | 3-4% of assessed value |
| Registration & License Tax (登録免許税) | 2% of property value |
| Judicial Scrivener Fees (司法書士報酬) | ¥100,000-300,000 |
| Real Estate Agent Commission (仲介手数料) | 3% + ¥60,000 + tax (max) |
| Consumption Tax (on commission & fees) | 10% |
| Mortgage Arrangement Fees (if applicable) | ¥50,000-100,000 |
Understanding Japanese Property Titles
Japanese properties have different ownership structures that affect your rights and responsibilities:
Owned Land with Building (一戸建て - Ikkodate)
You own both the land and the building outright. This provides maximum control and flexibility but requires full responsibility for maintenance.
Condominium Ownership (区分所有 - Kubun Shoyu)
You own your specific unit plus a proportional share of common areas. Monthly management fees apply, and major decisions require owner approval.
Leasehold Property (借地権 - Shakuchiken)
You own the building but lease the land beneath it. Less common and typically cheaper but with time limitations and ground rent obligations.
Property Inspections & Due Diligence
Thorough inspections protect your investment and reveal potential issues before purchase:
- Building Inspection (インスペクション): Professional assessment of structural integrity, especially for properties over 20 years old
- Earthquake Resistance: Verify compliance with current seismic standards (新耐震基準 - shin taishin kijun, post-1981)
- Title Search: Confirm clear ownership and no hidden liens or encumbrances
- Zoning Verification: Ensure property use complies with local zoning regulations
- Renovation History: Review past repairs and modifications for condominiums
Ready to Buy?
ARK G.K. provides comprehensive support throughout your property purchase, from initial search to post-purchase assistance. Our bilingual team ensures you understand every step of the process.